Explanation The important aspect that is common in all oligopolies is the interdependence. The interdependence among the firms will tend to collude and helps to avoid unexpected outcome and surprises. In the oligopoly market, there are only few firms that operate in the market, therefore each firm essentially notices the actions of other firms to preserve the market share...

Explain the reasons for the interdependence of firms, which plays a major role in oligopoly rather than perfect competition and monopolistic competition .

Microeconomics

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ISBN: 9781337617406

Author: Roger A. Arnold

Publisher: Cengage Learning

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Chapter 11, Problem 8QP

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Explain the reasons for the interdependence of firms, which plays a major role in oligopoly rather than perfect competition and monopolistic competition.

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